Arkansas-based J.B. Hunt Transport Services, Inc. felt the pain in its second quarter earnings as income dropped 5.3% for the firm whose big trucks roll daily across Oklahoma and numerous other states.
The trucking company had net earnings of $128.6 million or $1.31 a share, down from the second quarter 2024 net earnings of $135.9 million and $1.32 per diluted share.
The company blamed increased operating costs, stating in its release, “The decrease in operating income was primarily due to increases in casualty and group medical claims expenses, and higher professional driver wages and equipment-related costs.”
Total operating revenue for the current quarter was $2.93 billion and flat with the second quarter 2024. Revenue performance was driven by a 6% increase in Intermodal (JBI) loads and a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services® (DCS®) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services® (FMS) revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Current quarter total operating revenue, excluding fuel surcharge revenue, increased 1% versus the comparable quarter 2024.
Operating income for the current quarter decreased 4% to $197.3 million versus $205.7 million for the second quarter 2024. Operating income as a percentage of gross revenue decreased year-over-year as a result of the previously disclosed expense items, partially offset by lower rail and truck purchased transportation and fuel costs as a percentage of gross revenue.
Net interest expense for the current quarter increased approximately 5% from the second quarter 2024 due to a higher consolidated debt balance, partially offset by lower effective interest rates.
The effective income tax rate was 26.9% in the current quarter compared to 26.8% in the second quarter 2024. We continue to expect our 2025 annual tax rate to be between 24.0% and 25.0%.